After a subdued 2024, global M&A activity rebounded meaningfully in 2025 and has carried momentum into the first quarter of 2026. Deal volume is up approximately 22% year-over-year, driven by strategic transactions, private equity deployments, and cross-border activity.
Key drivers
Several factors are fueling the recovery. Corporate balance sheets are strong, with record levels of cash and available credit. Private equity firms are sitting on substantial dry powder — estimated at over $2.5 trillion globally — creating urgency to deploy capital before fund lifecycles expire. And boards are increasingly pursuing acquisitions as a growth strategy in sectors where organic growth has plateaued.
Sector themes
Technology remains the most active sector, particularly in AI infrastructure, cybersecurity, and healthcare IT. Healthcare consolidation continues as health systems seek scale and payers pursue vertical integration. Energy transition is driving significant deal flow in renewables, battery storage, and grid infrastructure.
Cross-border dynamics
European acquirers have been active in U.S. markets, attracted by technology assets and favorable valuations relative to domestic alternatives. Regulatory scrutiny of large transactions continues — particularly in technology and healthcare — though most deals are navigating the approval process successfully with appropriate planning.
Our outlook
We expect M&A activity to remain robust through 2026, supported by available financing, strategic imperatives, and the private equity deployment cycle. Companies should evaluate their portfolios proactively — both for acquisition opportunities and potential divestitures of non-core assets.